Ship or Die 2025: TradFi x DeFi: Risk-Abated Yield

Solana's DeFi landscape is on the brink of a major transformation as industry leaders unveil groundbreaking strategies to bridge the gap with traditional finance and catalyze ecosystem growth. In a riveting discussion at Solana Accelerate, key figures from Camino and Onri Finance reveal how innovative approaches to real-world assets (RWA), reinsurance, and cross-chain integration are set to propel Solana's DeFi sector to new heights.

Summary

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The "Ship or Die 2025" panel at Solana Accelerate brought together Mark Hull from Camino and Dan Roberts from Onri Finance (formerly Nayms) to discuss the future of DeFi on Solana. The conversation centered around strategies to boost Solana's DeFi traction, which currently lags behind Ethereum in terms of Total Value Locked (TVL) and stablecoin circulation.

Key topics included the integration of real-world assets (RWA) into Solana's DeFi ecosystem, the introduction of on-chain reinsurance pools, and the importance of high-quality yield opportunities. The speakers emphasized the need for more diverse and interesting assets on Solana to drive growth, including tokenized stocks, funds, and even Bitcoin representations.

The panel also highlighted recent launches and partnerships, such as Camino's V2 and Onri Finance's on-chain reinsurance pool, demonstrating the rapid pace of innovation in the Solana ecosystem. These developments are aimed at attracting both retail and institutional users by offering unique yield opportunities and leveraging the composability of DeFi protocols.

Key Points:

Bridging the Gap Between Solana and Ethereum DeFi

Mark Hull from Camino emphasized the need to bring more tokens and assets into the Solana ecosystem to drive growth. While Solana has a strong user base, it needs to expand its range of tradable assets to compete with Ethereum's DeFi dominance. Hull highlighted the potential of Real World Assets (RWAs) and cross-chain assets like Bitcoin representations to serve as collateral and trading instruments on Solana.

The introduction of tokenized stocks and funds was noted as a particularly promising development. These assets can provide interesting collateral options and drive demand for stablecoins within the Solana ecosystem. By broadening the range of available assets, Solana can attract more users and liquidity, potentially closing the gap with Ethereum's DeFi market.

Onri Finance and the Revolution of Reinsurance in DeFi

Dan Roberts introduced Onri Finance (rebranded from Nayms) and its groundbreaking approach to bringing reinsurance to the DeFi space. By tokenizing reinsurance and making it available as a liquid asset on Solana, Onri is opening up a massive traditional finance market to DeFi participants.

The launch of an on-chain reinsurance pool marks a significant milestone, allowing users to trade in and out of reinsurance positions 24/7 with instant liquidity. This development not only brings a new asset class to DeFi but also demonstrates how traditional financial products can be reimagined and improved through blockchain technology. The potential for scaling this model is immense, given the size of the global reinsurance market.

High-Quality Yield Opportunities and Ecosystem Maturation

Both speakers emphasized the growing demand for high-quality yield opportunities within the Solana ecosystem. As the network matures and users accumulate wealth, there's an increasing appetite for sophisticated financial products that can provide stable and attractive returns.

The integration of real-world assets and reinsurance products into DeFi protocols is seen as a key driver for generating these yield opportunities. By leveraging the strengths of both traditional finance and DeFi, protocols like Camino and Onri are creating new avenues for users to earn returns that are less correlated with crypto market volatility.

Composability and Innovation in Solana's DeFi Landscape

A significant advantage of Solana's DeFi ecosystem is the composability between different protocols. The speakers highlighted how this feature allows for innovative financial products and strategies that aren't possible in traditional finance.

For example, Camino's support for Onri's reinsurance token (ONRE) as collateral demonstrates how different DeFi protocols can work together to create new financial opportunities. This composability enables users to leverage their assets in multiple ways, potentially increasing capital efficiency and yield generation possibilities.

Facts + Figures

• Ethereum currently has a TVL of $70 billion, while Solana's TVL is $10 billion, a 7x difference
• Ethereum has $120 billion in stablecoins, compared to Solana's $12 billion, a 10x difference
• RWA X runs a $100 million private credit fund providing liquidity to around 30 DeFi protocols
• Onri Finance launched an on-chain reinsurance pool, allowing 24/7 trading of reinsurance positions
• $3.5 million of liquidity was built on Orca for Onri's reinsurance token within a day of launch
• The global reinsurance market is valued at $750 billion and expected to grow to $2 trillion in the next decade
• Onri's reinsurance offerings cover diverse areas including directors and officers, tech errors and omissions, cyber, travel, and property catastrophe insurance
• Camino announced its V2 launch, focusing on credit solutions and expanding collateral options
• OKX released XBTC, a Bitcoin representation token on Solana
• Kraken announced plans for tokenized stocks on Solana

Top quotes

• "For me, we've got the users. We need to bring in the tokens." - Mark Hull, Camino
• "We're no longer the poor chain. We had to buy meme coins when SOL was at $10. SOL's now done a 10X." - Mark Hull, Camino
• "Yesterday, there was $3.5 million of liquidity debt built on Orca. So suddenly, this sort of six-year mission of ours to introduce reinsurance as a liquid asset class was completed yesterday." - Dan Roberts, Onri Finance
• "We can apply well-performing assets in the tradfi world mix of DeFi." - Dan Roberts, Onri Finance
• "The dynamics in the DeFi world don't exist in the tradfi world." - Dan Roberts, Onri Finance

Questions Answered

What is the current state of Solana's DeFi ecosystem compared to Ethereum?

Solana's DeFi ecosystem is currently lagging behind Ethereum in terms of total value locked (TVL) and stablecoin circulation. Ethereum has a TVL of $70 billion and $120 billion in stablecoins, while Solana has $10 billion TVL and $12 billion in stablecoins. This represents a 7x difference in TVL and a 10x difference in stablecoin circulation, indicating significant room for growth in Solana's DeFi sector.

How is Camino contributing to the growth of Solana's DeFi ecosystem?

Camino is contributing to Solana's DeFi growth by focusing on credit solutions and expanding collateral options. They recently announced their V2 launch, which aims to make Camino the largest borrow-lend marketplace on Solana. Camino is particularly excited about integrating real-world assets (RWAs) as collateral, including tokenized stocks and funds. They're also supporting innovative assets like Onri's reinsurance token (ONRE), enabling users to leverage these new yield opportunities.

What is Onri Finance and how is it revolutionizing DeFi on Solana?

Onri Finance, formerly known as Nayms, is bringing the reinsurance industry to DeFi on Solana. They recently launched an on-chain reinsurance pool that allows users to trade reinsurance positions 24/7 with instant liquidity. This innovation brings a massive traditional finance market ($750 billion, expected to grow to $2 trillion) into the DeFi space. Onri's reinsurance token offers diversified risk exposure across various insurance types, providing a unique yield opportunity for DeFi users.

How are real-world assets (RWAs) being integrated into Solana's DeFi ecosystem?

Real-world assets are being integrated into Solana's DeFi ecosystem through tokenization and innovative protocols. This includes tokenized stocks announced by Kraken, tokenized funds, and even Bitcoin representations like XBTC from OKX. These RWAs serve as collateral in lending protocols like Camino, enabling users to borrow against them or earn yield. The integration of RWAs is seen as a key driver for attracting more users and liquidity to Solana's DeFi ecosystem.

What advantages does Solana offer for DeFi compared to traditional finance?

Solana offers several advantages for DeFi compared to traditional finance, with composability being a key feature. DeFi protocols on Solana can easily interact and integrate with each other, allowing for innovative financial products and strategies that aren't possible in traditional finance. This composability enables users to leverage their assets in multiple ways, potentially increasing capital efficiency and yield generation possibilities. Additionally, Solana's high-speed, low-cost transactions make it ideal for complex DeFi operations and frequent trading.